SolarEdge’s core solar microelectronics business helped deliver record revenue in the first quarter of 2019, following the recent non-solar acquisitions.
The Israel-based company reported revenue of $271.9 million for the first quarter, up 3% from the fourth quarter of 2018 and up 30% from $209.9 million in the same quarter last year.
This kind of performance has become fairly standard for SolarEdge. The news was not all positive for SolarEdge in 1st Quarter. Its net income fell 47% from last year, to $19 million. The decrease was driven largely by costs of integrating the companies that it has acquired in 2018—uninterruptible power supply company, Gamatronic; South Korean battery manufacturer Kokam, and Italian EV drivetrain firm SMRE.
CEO Guy Sella highlighted SolarEdge’s continual strong growth in its core solar panel optimizer business, as well as its growing inverter business. The company shipped 1.1 Gigawatts of these products in the first quarter, with 3 million power optimizers and 151,000 inverters.
CFO Ronen Faier noted that this is the first quarter in which SolarEdge has acquired out of its mainline solar business of panel-level optimizers and inverters. Revenue related to the solar business totaled $253.1 million in the 1st quarter, up 21% from $209.9 million in the same quarter last year.
But this was also the first quarter that included SMRE’s financial performance in SolarEdge’s non-solar financials, Faier added.
In January, SolarEdge agreed to acquire 56% of the Italian EV drivetrain, charging and telemetry technology provider’s shares on the Italian AIM stock exchange, at a price of approximately $85 million. Since then, SolarEdge has continued its journey to acquire SMRE shares, and now holds more than 98% of the company.
Last year, SolarEdge announced plans to acquire a majority stake in Kokam. It continued buying shares in the battery company during Quarter 1 as well.
Today, SolarEdge utilises lithium-ion batteries from LG, and the company’s optimizers and inverters are often paired with Tesla batteries in deployments like its virtual power plant projects with utilities in Australia and Vermont. But SolarEdge is also integrating its own Kokam products due out next month in different applications, including a 3-phase on-grid storage system for the European market.